Security Deposit

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The security deposit is your security, and you have to use it

The security deposit should be a different amount than the rent being charged, but no more than one and half the rent. For example, for a $500 rent the deposit could be between $400 and $750.

When the tenant moves out and the property/apartment is left in good condition, and normal wear and tear is accepted, the deposit is refunded, less a carpet cleaning fee.

To make it clear the Rental Agreement should have this line:

The tenant will be charged a $95 non-refundable cleaning fee, separate from the security deposit tendered for this agreement.

For more information go to: Normal Wear and Tear

Here is what my Residential Lease/Rental Agreement has about the Security Deposit:

SECURITY DEPOSIT: $__________ as security deposit is to indemnify owner against damage to the property and for Tenant�s fulfillment of the conditions of this agreement. The "XX" Bank holds deposits into a commercial non interest bearing account. Deposit will be returned to Resident, thirty (30) days after the residence is vacated if:

Lease term has expired or agreement has been terminated by both parties, and

All money due Management by Resident have been paid, and

Residence is not damaged and is left in its original condition, normal wear and tear expected, and

Management is in receipt of copy of paid final utility bill (electricity, gas) and,

Deposit will not be returned if Resident leaves before lease time is completed. Deposit may be applied by Management to satisfy all or part of Resident �s obligation and such act shall not prevent Management from claiming damages in excess of the deposit. Resident may not apply the deposit to any of the rent payment.

NOTICE TO TENANT: YOU MUST NOTIFY YOUR LANDLORD IN WRITING WITHIN 4 DAYS AFTER YOU MOVE OF A FORWARDING ADDRESS WHERE YOU CAN BE REACHED AND WHERE YOU WILL RECEIVE MAIL; OTHERWISE YOUR LANDLORD SHALL BE RELIEVED OF SENDING YOU AN ITEMIZED LIST OF DAMAGES AND THE PENALTIES ADHERENT TO THAT FAILURE.

In my eight years of property management I returned a full 100% deposit few times.

If the tenant leaves behind anything, that becomes "trash removal" and I charged for each bag. The reusable items get to "Salvation Army".

Many times I can not recover the rent lost or the cost for repairs.

Garnishing the ex tenant's job income, is one solution, and that means $25 per month for few months, until the ex tenant changes the job and disappear from my radar screen.

My lawyer was able to recover my loss from an evicted tenant by getting the state tax check refund. It amazes me how much one can do with knowledge and a court judgment paper.

If the tenant(s) leave without a forwarding address I mail the "Security Deposit Notice to Tenant" with proof of mailing to vacated apartment address and let the Post Office to redirect the mail further.

I still have my proof of mail receipt and eventually the returned envelope in case some ugly ideas comes in an ex tenant' mind.

You should recover your losses using your landlord's rights and the help of your team of advisers.

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The security deposit is your security, and you have to use it

Receive monthly real life Tips. Subscribe to "Sharing with You" free news.

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